Dáil Éireann Debate, Tuesday - 13 June 2023
408. Deputy Ged Nash asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when he expects Ireland to receive almost €90 million in grants for REPowerEU projects; if he will provide details on the nature of the projects that will be funded by these resources; and if he will make a statement on the matter. [27531/23]
View answerREPowerEU is a plan to phase out the EU’s dependency on Russian fossil fuel imports. The plan aims to boost the independence and security of the Union’s energy supply and accelerate the green transition. In practical terms, REPowerEU will be financed via the Recovery and Resilience Facility (RRF). This facility is a performance-based instrument and is contingent on the delivery of milestones and targets. Ireland’s allocation in grants under REPowerEU is worth circa €90m. In addition, the Government agreed to request a transfer of €150 million from the Brexit Adjustment Reserve (BAR) to the REPowerEU programme to mitigate the risk in relation to the drawdown of BAR funds, bringing the total amount available to €240 million. A further transfer request from BAR to RePowerEU is currently under consideration.
To access this funding, Member States, including Ireland, will be required to amend their National Recovery and Resilience Plan (NRRP) and add a specific chapter to outline the key investments and reforms to help achieve the REPowerEU objectives. My Department has commenced informal discussions with the Commission and is engaging with Departments on potential proposals including from the Departments of Environment, Climate and Communication; Education; Transport; and Agriculture, Food and the Marine, and the OPW. Following this engagement, I will bring a Memorandum to Government seeking approval for the proposed REPowerEU programme to be negotiated and agreed with the European Commission.
The formal process will involve detailed assessment by the Commission to ensure that the draft REPowerEU chapter complies with the RRF and REPowerEU Regulations. When the Commission has completed its evaluation, they will publish a draft Council Implementing Decision setting out the agreed investments and reforms and their associated milestones and targets. The Member States (Council of the European Union) then scrutinise the draft Council Implementing Decision in the Economic and Financial Committee (EFC) and it will ultimately be adopted by the ECOFIN Council of EU Finance Ministers. Ireland is represented by the Department of Finance in these fora. Following adoption, the Commission signs the Financing Agreement and Operational Arrangements with the Member State to commit resources. This assessment and approval process can take a number of months.
It is only following achievement of the milestones and targets within the final agreed REPowerEU chapter that Ireland can begin the payment application process to drawdown the REPowerEU grant.
